Economy
Number of companies in Dow Jones Sustainability Indices falls
The number of companies in the Dow Jones Sustainability Indices (DJSI) has fallen when compared to the previous year. DJSI World 2013/14 will have 333 components, compared to the 340 in 2012/13.
The DJSI family of indices launched in 1999 and were the first global indices to track financial performance of the leading sustainability-driven companies worldwide.
Following RobecoSAM’s Corporate Sustainability Assessment (CSA), the DJSI made 39 additions and 47 deletions from its listings. The three largest deletions were Johnson & Johnson, HSBC Holdings and Vodafone Group. The three largest additions to the indices were Bank of America Corp, UBS AG and United Parcel Service.
The CSA aims to provide an in-depth analysis of financially economic material, environmental and social practices, such as innovation or supply chain management, climate strategy and stakeholder engagement.
Guido Giese, head of indices at RobecoSAM, said, “The DJSI have a double impact. They enable investors to integrate sustainability into their portfolios and at the same time they provide an engagement platform that encourages companies to adopt best practices.
“We encourage active participation in our Corporate Sustainability Assessment each year and this year we are happy to see a 31% increase in participation from companies in emerging markets.”
In terms of regions, Europe accounts for the largest proportion of components. Some 177 companies from Europe are included in the DJSI, up from 166 in the previous year. In contrast, the Asia Pacific region saw a slight decease, falling to 152 from 154, whilst North America remained flat at 140.
David Blitzer, managing director and chairman of the S&P Dow Jones Index Committee, said, “The market upheavals and high debt levels of the last few years should remind investors that a long term view of the world and the markets is essential. The DJSI combine that kind of long run focus on sustainability with index investing to empower investors.”
Further reading:
‘Ethical index’ launched to measure Italian banks against international standards
Barclays and MSCI launch cluster of sustainable investment indices